Deutsche Bank to repay $3.7M to customers

The Securities and Exchange Commission has issued an order instituting an enforcement action against Deutsche Bank Securities Inc., which has agreed to repay more than $3.7 million to customers, including $1.48 million that was ordered as disgorgement. The SEC’s investigation found that traders and salespeople made false and misleading statements while negotiating sales of commercial mortgage-backed securities (CMBS). According to the SEC’s order, customers overpaid for CMBS because they were misled about the prices at which Deutsche Bank had originally purchased them. Deutsche Bank will also pay a $750,000 civil money penalty to the U.S. Treasury.